"Gold Prices Rally Following Weak US PCE Price Index Data - December 20, 2024"

On December 20, 2024, gold prices (XAUUSD) climbed as the US PCE Price Index (Personal Consumption Expenditures) data came in weaker than expected. The PCE index, a key inflation gauge monitored by the Federal Reserve, indicated a slowdown in inflation, triggering expectations of earlier interest rate cuts and driving gold prices higher.

Today’s given signal : https://t.me/calendarsignal/16456

Factors Behind Weak PCE Price Index Data

The PCE Price Index for November 2024 rose by 2.4% year-on-year, below the expected 2.6% and down from 2.7% in October. The Core PCE Index (excluding food and energy) increased 2.8%, missing forecasts of 2.9%.

Key factors contributing to weaker PCE data include:

Slower Consumer Spending: Higher borrowing costs and economic uncertainties reduced spending, causing weaker price growth for goods and services.
Easing Energy Prices: Falling energy costs, particularly oil and gas, contributed to subdued inflationary pressures.
Supply Chain Stabilization: Improved supply chain conditions led to stable prices for goods, lowering inflationary trends.
Tight Labor Market Easing: Wage growth slowed to 3.6% compared to 4.1% in the prior month, reducing upward price pressure on services.

Impact on Gold Prices

Weaker PCE data heightened expectations of a more dovish Federal Reserve policy in early 2025, driving gold higher:

Spot gold (XAUUSD) rose 1.7%, moving.
Gold futures climbed 1.5%, settling.

Lower inflation signals a possible interest rate cut, reducing the opportunity cost of holding gold and making it more attractive to investors.

Previous released data results :

On last PCE Data (27-11-2024) we predicted bad data, & as per that we suggest to BUY XAUUSD & as a result, we made a profit of 34 points according to the signal we gave.

Check the previous blog : https://blog.forextrade1.co/expert-analysis-predicting-the-gold-prices-before-us-data-release-today-27-11-2024/

Check last given signal : https://t.me/calendarsignal/16134

Performance : https://t.me/calendarsignal/16152